The Air Line Pilots Association said Sunday evening it had reached a tentative agreement with Envoy Air. ALPA’s Envoy master executive council had recommended that its pilots approve the deal.

Shortly afterward, Envoy sent a message to employees announcing the tentative agreement and said the deal would give larger jets at the American Airlines Group regional airline.

“This Tentative Agreement will allow Envoy to upgrade its fleet with a guarantee of 40 new 76-seat Embraer 175 (E175) regional jets, beginning in the fourth quarter of 2015,” Envoy president and CEO Pedro Fábregas said.

“Additionally, this agreement ensures that Envoy will operate up to 90 additional E175 jets, if American Airlines chooses to exercise the options they hold with aircraft manufacturer Embraer on those aircraft,” Fábregas said.

ALPA previously sent a tentative agreement to pilots, but members voted it down in early 2014. Since then, AAG had taken a number of steps to shrink the carrier, including announcements that some of its 50-seat Embraer 145 jets and all of its 65-seat Bombardier CRJ-700s to other carriers.

In addition, none of the larger 76-seat jets had been assigned to Envoy, renamed in April from American Eagle Airlines. Thirty Bombardier jets and 20 of 60 Embraer jets ordered last December have been assigned to other carriers. But 40 had been kept unassigned.

In a message to ALPA members, MEC chairman Sam Pool explained why the union had recommended approval of the latest deal.

“The MEC believes this TA is the best obtainable agreement, and provides the best path forward for Envoy pilots given our circumstances,” Pool wrote.

“To say this has been a difficult process is an understatement. All quadrants of our diverse pilot group will be affected by some factors of this agreement, and our reps have not taken this decision lightly,” Pool wrote.

“It has been one year since this process began, and to this end, our negotiators, officers and the entire ALPA leadership have ensured that they have achieved as much as possible in return for the re-fleeting of our airline,” he wrote.

Fábregas thanked the union leadership for negotiating and endorsing the new deal.

“If ratified, this Tentative Agreement will form the foundation for a bright future for our company. It will be especially promising for our pilots, providing them new, large and modern aircraft to fly and a faster path to a career at American Airlines,” Fábregas wrote.

Pool and Fábregas released no details on what pilots must agree to in the proposed contract.

Note: Original version of this item said MEC leaders had unanimously recommended approval. That was incorrect.

Keep reading for the full messages from Pool and Fábregas.

Fellow Envoy Pilots,

The Envoy MEC reconvened early this morning in Washington, DC to consider a final proposal from company representatives. After another full day of intense negotiations and discussions, late tonight the MEC approved a tentative agreement (TA), endorsing and supporting its ratification by the membership. The MEC believes this TA is the best obtainable agreement, and provides the best path forward for Envoy pilots given our circumstances.

To say this has been a difficult process is an understatement. All quadrants of our diverse pilot group will be affected by some factors of this agreement, and our reps have not taken this decision lightly. It has been one year since this process began, and to this end, our negotiators, officers and the entire ALPA leadership have ensured that they have achieved as much as possible in return for the re-fleeting of our airline.

We’ve reached a point where the final decision rests with you, and a ratification vote will be conducted in the near future. A summary and the full language are attached to this email for your review. The MEC is planning roadshows beginning this week, and will conduct several all pilot conference calls. We will provide you a list of specific times and locations for all roadshows and pilot conference calls in a future email.

Thank you for your continued professionalism and support.

In Unity

Sam Pool

Envoy MEC Chairman

Sunday, December 7, 2014

Special Today@Envoy

Envoy and ALPA Reach Tentative Agreement to Operate Larger, Two-Class Embraer E175 Aircraft and Position the Airline for Growth

Dear Envoy team:

I am very pleased to report that a Tentative Agreement has been reached with our pilots, represented by the Air Line Pilots Association (ALPA). My sincere thanks to Envoy ALPA for all of their work to develop and reach this Agreement that has been endorsed and will be supported by the union’s Master Executive Council (MEC). It is my understanding the tentative agreement will immediately be sent to our pilots for a vote. If ratified, this Tentative Agreement will form the foundation for a bright future for our company. It will be especially promising for our pilots, providing them new, large and modern aircraft to fly and a faster path to a career at American Airlines.

This Tentative Agreement will allow Envoy to upgrade its fleet with a guarantee of 40 new 76-seat Embraer 175 (E175) regional jets, beginning in the fourth quarter of 2015. Additionally, this agreement ensures that Envoy will operate up to 90 additional E175 jets, if American Airlines chooses to exercise the options they hold with aircraft manufacturer Embraer on those aircraft.

For our pilots, this agreement dramatically improves their ability to further their careers at American Airlines by enhancing the company’s industry leading Envoy-to-mainline flow-through rights for current and new hire Envoy pilots. The time it takes for our pilots to qualify and receive priority over external candidates for pilot positions at American will be greatly reduced, allowing our pilots to advance and grow their careers at both Envoy and American. It will also help us attract the best new talent, because we will be able to offer a clear career path to the world’s largest mainline carrier – something no other regional airline can currently offer.

Thank you again to the negotiating committee and Envoy ALPA. ALPA will provide details of the agreement and a voting schedule to our pilots soon. Much work and discussion went into creating an Agreement that would satisfy all groups involved and because of this, the future of our company has never looked brighter. As we head into the holiday season, it is my sincere wish that Envoy will have much to celebrate in the new year!

Envoy Air president and CEO Pedro Fábregas issued a message to airline employees that started by praising the carrier’s April performance, then moved into soothing words about the airline’s future.

Among the reassurances was that the carrier’s 47 Bombardier CRJ-700s, Envoy’s only airplanes with more than 50 seats, are going to be staying put for a while.

“Going forward, I hope everyone appreciates that both of our company’s major business units – our flying business and our ground business – remain vitally important to us. Our flying business remains one of the largest regional air service providers in the country that flies for the largest airline in the world,” Fábregas wrote in an internal message to employees.

“As American has previously stated, 25 of our Embraer 140 aircraft will be retired by the end of 2014 and Envoy will continue to fly approximately 200 aircraft for the foreseeable future – including our 47 larger Bombardier CRJ-700 aircraft,” he said.

That seems to contradict earlier warnings, although it might depend on how long “the foreseeable future” is. When pilots rejected a new contract demanded by American Airlines Group management in late March, officials then said the 47 CRJ-200 airplanes, which have 64 to 66 seats, would be transferred to other carriers under the American Eagle brand.

Fábregas’ message was considerably more cheery than the message that pilot union chairman William Sprague sent out to Envoy’s Air Line Pilots Association members on May 1.

According to Sprague (and we quote):

The company has made it clear that Eagle intends to park our 59 EMB 140′s and transfer our 47 CRJ 700′s to another carrier. We don’t know what that drawdown timetable looks like, but we do know:

– We will need about 47% fewer pilots than we have on our list today

– We don’t have any aircraft to replace those we will lose

– Anticipate a halt on any upgrades

– This would require a significant displacement bid including downgrades

– There will be serious questions on the viability of our current domiciles

– We have been advised that a displacement bid will be out shortly

AAG executives had promised that if pilots approved the contract, Envoy would get 60 of the 76-seat Embraer E175 jets that AAG has on order. Otherwise they would go elsewhere, a point that Sprague addressed in the May 1 message.

“AAG executives indicated last week that they are in the final stages of placing the EMB 175′s intended to re-fleet us on another property. We have not been advised who will receive the aircraft. It has been suggested that 20 will go to a carrier that can begin taking delivery early next year, and another 20 will go to a different carrier with deliveries taking place sometime later,” Sprague wrote.

“If this is true we will not have any expectations, based on AAG’s current aircraft orders, of being offered any new aircraft for about four years,” he said.

In his message Thursday, Fábregas offered out hope for the bigger planes at Envoy, eventually.

“As American Airlines Group leadership has consistently stated, Envoy is an important part of both the American network and the larger AAG business,” Fábregas wrote. “While new, larger aircraft will not be placed on our certificate in the near-term, AAG does hope we will be able to fly larger and more cost-effective aircraft in the future.”

(As to the Embraer E175s, we expect that an announcement is imminent about what other carrier will get them. Including Envoy, 10 carriers operate under the regional-carrier umbrella of American Airlines Group.)

An Embraer EMB-145 operated by American Eagle Airlines taxis towards a gate at Dallas/Fort Worth International Airport on April 11. The jet will soon carry an "Operated by Envoy Air" decal.

April 15 is not just Tax Day or the 149th anniversary of the death of Abraham Lincoln. It’s the day that American Eagle Airlines Inc. becomes Envoy Air Inc.

Parent American Airlines Group and AEA management announced Jan. 14 that the regional carrier would be renamed as Envoy. That was primarily to differentiate that airline from the brand American Eagle.

In a letter to employees, Envoy Air president and CEO Pedro Fábregas called the name change the beginning of “an exciting new chapter in our storied history. With this we have the opportunity to create what I’m confident will be a very bright and successful future for our company and our employees.”

So let’s go over the facts of the name change and perhaps clear up some confusion.

– American Eagle Airlines becomes Envoy Air.

– Envoy keeps flying as American Eagle, with its airplanes to have a small “Operated by Envoy Air” decal on its side by the end of April.

– American Airlines has contracts with a number of other regional carriers that operate American Eagle service, and none of them are owned by American. Those carriers include Republic Airlines, ExpressJet, SkyWest Airlines and Chautauqua Airlines.

– American Airlines Group’s US Airways unit has two regional carriers, PSA Airlines and Piedmont Airlines, that now operate as US Airways Express but will eventually be re-branded as American Eagle.

Here’s an explanation from Fabregas:

As shared previously, our name change is driven by our need to differentiate ourselves from the other regional carriers flying as American Eagle. There currently are multiple other regional airlines flying as American Eagle. As the mainline integration continues, additional regionals now flying for legacy US Airways using the US Airways Express brand will take on the American Eagle brand. Our new name will help us avoid any potential confusion among the public or regulatory agencies.

We have this message from the top executive at American Eagle Airlines, which we print here as a follow-up to the message that the pilot union chairman sent to his members Friday.

A Message from President and CEO Pedro Fábregas

Dear American Eagle Team:

As I am out and about meeting with our incredible employees, I am constantly being asked about the future of the airline and whether the recently ordered Embraer aircraft will be placed at our carrier. If you were able to read last week’s regional jet order announcement, American said placement of the aircraft will be dependent on both cost and performance.

All of our people have done an amazing job to help us deliver on the performance American expects of us. I also wanted to let you know that yesterday, company representatives met with representatives of ALPA, which represents our pilots. We presented the union with a proposal that would commit 60 Embraer E175 aircraft to American Eagle Airlines. A key component of our proposal is improving the ability of our pilots to further their careers at American Airlines. The proposal does this by improving the monthly rate of flow through of our pilots to American to those who currently hold flow rights. It also extends our industry-leading regional-to-mainline flow rights to all American Eagle Airlines pilots, including those pilots currently employed with us and all of our future new hire pilots. Of course, we have also told ALPA we must have competitive costs to have the aircraft placed at Eagle, but we have listened carefully to our pilots and tried to design a solution that will work for everyone. As a result of this process, I am proud we have been able to offer these career opportunities for American Eagle Airlines pilots.

I have the utmost confidence our pilot leadership will make the best decision possible for their future and the future of our company. We all want exactly the same thing – job security with more opportunities to grow and contribute to the success of our company.

We will continue to talk to the pilot leadership in the days ahead and we have committed to each other to do everything possible to achieve a positive outcome.

American Eagle management is holding out the promise of larger Embraer E175 jets to the carrier's pilots.

Management has proposed a contract with American Eagle pilots that would guarantee that they would get the new, larger jets they need to ensure their future.

But it requires concessions as well.

In a message Friday to American Eagle pilots, union chairman Bill Sprague said that management warned of dire consequences if the Air Line Pilots Association unit and the airline can’t reach a deal.

“The company indicated to us that, without what they consider to be a cost-competitive agreement, they will place the aircraft with a competing carrier and we would become ‘Comair II,’” wrote Sprague, chairman of ALPA’s Master Executive Council at American Eagle.

The MEC leadership in mid-July rejected contract changes requested by US Airways president Scott Kirby and other executives who were part of the incoming management of parent American Airlines. US Airways merged with American on Dec. 9, and Kirby is now American’s president.

PSA Airlines, one of US Airways’ commuter carriers, was picked last week to get 30 76-seat Bombardier CRJ900 jets. The new American management also said they had placed an order for 60 76-seat Embraer E175 jets, but didn’t state which airline would get them.

(CORRECTION: The original version of this story incorrectly said a different US Airways Express carrier, Piedmont Airlines, was getting the jets. We regret the stupid error.)

In his message to member, Sprague said the revised proposal from American Eagle management guarantees only 60 of the larger jets.

The “Comair II” refers to Comair, a regional carrier purchased by Delta Air Lines Inc. in 1999, but closed down in September 2012.

In a Dec. 2 interview, Kirby expressed hope that the union and management can negotiate a deal good for both the pilots and the airline.

“We are working with the pilots’ union, and I believe we will get a new deal done with them,” Kirby said. “We hope to be able to grow American Eagle with larger jets. The first step is getting a deal done with the pilots’ union.”

As the American Airlines and US Airways merger approaches, the new team is coming into focus. On Monday, senior vice president Robert Isom announced the leadership in operations.

The changes go into effect when the merger goes into effect, expected to be late this summer.

Kerry Hester will become senior vice president of customer experience. She currently holds the same title at US Airways. Under her will be:

Carol Wright, vice president of customer planning. She currently holds the same title at American.

Tim Lindeman, vice president of reservations. He is currently vice president of reservations and customer planning at US Airways.

Donna Paladini, vice president of stations. She is currently vice president of airport customer service and operations support at US Airways.

Tim Ahern, vice president of gateways and hub coordination. He currently is vice president of New York and international at American.

Isom said that the vice presidents at each carrier’s hubs will remain in those jobs after the merger: Art Pappas at Dallas/Fort Worth International Airport, Marilyn DeVoe at Miami and Franco Tedeschi at Chicago for American, and Bob Ciminelli at Philadelphia and Terri Pope at Charlotte, N.C., for US Airways.

Art Torno, currently American’s vice president for Mexico, Caribbean and Latin America, will become senior vice president for those areas.

Suzanne Boda will be senior vice president for Asia, Canada, Europe and cargo. She’s currently senior vice president of airport customer service, international and cargo for US Airways.

Jim Butler will be president of American Airlines cargo. He currently is managing director of commercial planning and performance at American.

Tim Campbell was named integration consultant and will likely become senior vice president of air operations after the merger. He is coming to the job from Mountain Vista Consulting, where he is CEO.

Hector Adler will be vice president of inflight service. Adler holds that position now at US Airways.

Kimball Smith will be vice president of the integrated operations center/operations control center. He is currently managing director of the integration operations center at American.

The vice presidents of flight at each airline, John Hale of American and Lyle Hogg of US Airways, will remain on those jobs for the time being.

The changes also announce the replacement for Dan Garton, the president and CEO of American Eagle.

Kenji Hashimoto will become senior vice president of regional carriers. That includes American’s regional carrier, American Eagle; those of US Airways – PSA Airlines and Piedmont Aviation; and regional contract carriers. He currently is president of American Airlines cargo.

Pedro Fabregas becomes president of American Eagle Airlines. He currently is senior vice president of customer services at American Eagle.

Piedmont president Steve Farrow and PSA president Keith Houk remain in their current jobs.

David Seymour will become senior vice president of technical operations. (Think maintenance activities). He currently is senior vice president of maintenance operations at US Airways.

Paul Wroble will be vice president of line maintenance. He currently is vice president of maintenance operations at US Airways.

Bill Collins will be vice president of base maintenance. He holds the same title at American.

For the time being, Bill Cavitt, vice president of engineering, performance and quality assurance at American, and Kevin Brickner, vice president of technical services at US Airways, will remain in their jobs.

Paul Morell will be interim vice president of safety, security and environmental programs. He currently holds that title (minus the interim) at US Airways. He will retire after a replacement is named.

Ed Bular will help the new American coordinate efforts to get a single operating certificate, then leave the airline. He is currently senior vice president of flight operations at US Airways.

Leaving the merged airline “over time” will be:

David Campbell, vice president of safety and operations performance at American.

Fred Cleveland, chief operating officer and senior vice president of technical operations at American Eagle.

Lauri Curtis, vice president of flight service at American.

Ken Durst, vice president of line maintenance at American.

Dion Flannery, president of US Airways Express operations.

John Hutchinson, chief financial officer and senior vice president of finance planning at American Eagle.

Don Langford, vice president of customer care at American.

Bob Maloney, vice president of operations control center at US Airways.

Keep reading for Isom’s letter to employees from which this item is taken, followed by Garton’s letter to the American Eagle employees.